1 The Package Matt Bateman Luke Kunselman Justin Ziccardi Stephanie Zimmer 1 The Package Gifts for Guys

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The PackageMatt BatemanLuke KunselmanJustin ZiccardiStephanie Zimmer

1The Package

Gifts for Guys

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“A man doesn't know what happiness is until he's married. By then it's too late. “ – Frank Sinatra

“"I never intended to be a revolutionary. …But it turned out to be a very revolutionary idea." - Hugh Hefner

The PackageGifts for Guys

Words of Wisdom

http://www.theratpack.org.uk/imagesindex.htm

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Men deserve better!

A Knowledge Premium…

Investors deserve the payoff of a great investment.$71 million year 5 value


The Call For Action


Tacky Ties and Gadget Gizmos?

Forget about it.

Is the thought all that really counts?

The Need, and Opportunity

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http://www.theratpack.org.uk/imagesindex.htm

9The Package

Gifts for Guys

Drinking – Smoking – Gaming - Sexuality

The Art of Shaving

Engraved Shaving Set

$85

Cater to the four “vices” of man.

Product and Service Strategy

10The Package

Gifts for Guys

…Explained

Actually, Dr. Freud, a cigar isn’t just a cigar.

The Knowledge Premium

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“Giftware industry…$55 billion in retail sales…”

-retailindustry.about.com


Industry Size

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Denver Metro Area-2.3 million people-500,000+ men aged 22-40


Target Market – Size

13The Package

Gifts for Guys

Target Market – Psychographics

Sociable

Renaissance man

Place of Refuge

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Age: 22Income: $35,000Status: SingleFav. Movie: Ocean’s 11

Age: 40Income: $68,000Status: MarriedFav. Movie: Wall $treet

Mother

Wife

Girlfriend

Sister


Daughter

Target Market

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Sharper Image – 130 stores

HammacherSchlemmer – 2 stores

Brookstone – 250 stores

Nordstrom – 137 stores


Competition

http://www.hammacher.com/publish/66496.asp?promo=travel

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IMAGE

PRODUCT DIVERSITY

The Package


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•Knowledge Premium

•Unique products

•Unique manufacturers


$65Bisgard Wine Carrier

Competitive Advantage

The PackageGifts for Guys 18

Radio & Print Advertising

Denver Post, Westword

Alice 106, 850 KOA

Package Specialist (Low Cost & Creative)

News4 in the afternoon

9News “What’s Hot” segmentTalk Radio


Key Marketing Strategies


Package Sponsored Events

•Billiards Night Shakespeare’s in Denver

•Drink Mixing Night Purple Martini in Denver


Key Marketing Strategies

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Location, Location, Location;Market Research is the Answer

Inventory supply & scalability(The Testosterone-Aspen Effect)

Low barriers to entry(mitigated by the Knowledge Premium)

Proper Product Mix Will Prevent Poor Performance


Risky Business

Employee Turnover

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Year

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1 2 3 4 5

($000)


Revenue


According to comparables…. $750,000-1,200,000 per store, per year.


Revenue

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(6,000,000)

(4,000,000)

(2,000,000)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

1 2 3 4 5

High Growth Rate Inhibits

Breakeven until Year 4.

A single store would

breakeven in Year 2.


Breakeven Analysis

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0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

1 2 3 4 5 60 1 2 3 4 5


Cash Flow (at year end)

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The Seed Round (year 0)$1,500,000 @ 60% Annual Return = 30% ownership

• Builds/Operates 3 stores for 2 years

The Growth Round (year 2)$5,000,000 @ 50% Annual Return = 40% ownership

• Builds/Operates additional 22 stores


Funding

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The gifts guys really want

Knowledge Premium: The Package Advantage

$71 Million Market Cap


Conclusion

27The Package

Gifts for Guys

Gaming Accessories

Dark Wood Poker Chip Case

$55

•Highest quality craftsmanship and a smooth rich finish.

•Strong, bright and durable brass handles, hinges and lock secure chips.

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COHIBA XV $85

The Newest Cohiba For 2001!!! Offering Full Bodied Flavor & A Very Rich Taste, Featuring A Sumatra-Seed Wrapper & CT-Broadleaf Binder!


Smoking Accessories

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Romeo Bathrobe $70•100 % cotton •Velour on outer side, terry on inner side •Shawl collar •2 patch pockets •Adjustable sleeve length with turn back cuffs •Self fabric belt


Sex Appeal

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Galleria Multi Color Martini Glasses - Set of 6 $80

Beautiful waves of color are accented by 24 Karat Gold Paint. Each glass is hand painted and handcrafted in the highest quality glass studios in Romania. Each is an unique and special work of art.


Drinking Accessories

31The Package

Gifts for Guys

Salary & Wage Compensation

“The average sales person at Nordstrom’s earns $29,000 through a combination of base salary and commission.”

-BizMonthly.com

“The average Package Expert makes $34,000- $40,000 a year through salary and

commission.” ($21,000 base + 7% commission)

-The Package Team


Testosterone-Aspen

http://photos.groups.yahoo.com/group/thepackage/vwp?.dir=/&.dnm=package-shaving.jpg&.src=gr&.view=t


Testosterone-Aspen

http://photos.groups.yahoo.com/group/thepackage/vwp?.dir=/&.dnm=package-counter.jpg&.src=gr&.view=t

•2000 Sq. Ft.

•2 POS Terminals

•Pool Table which doubles as sales display

•Display Tables

•Humidor


Floor Layout

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The Package2000 sq. ft.

Sharper Image Brookstone Nieman Marcus Avg

Sales per sq. Foot 567 511 474 338 517RevCosts per sq. Foot 575 349 392 439 234Inventory per Sq. Foot 73 91 129 98 100

Three Main Competitors(Fiscal 2001)


Highlighted Comparables Data

Documents

1 The Package Matt Bateman Luke Kunselman Justin Ziccardi Stephanie Zimmer 1 The Package Gifts for Guys